Kakao union strikes for four hours in South Korea over pay and job security

Unionized workers at South Korean tech giant Kakao initiated a four-hour strike and rally on Wednesday, voicing demands for enhanced job security and a revised bonus system. The industrial action, scheduled from 10 a.m. to 3 p.m. local time, saw employees gather for a rally near Kakao's headquarters in Pangyo, Gyeonggi province.

The strike occurs against a backdrop of increasing labor activism in South Korea, Asia's fourth-largest economy. This trend is particularly evident in the tech sector, which is experiencing record earnings driven by the global artificial intelligence boom. Notably, Samsung Electronics' union recently secured a deal that links chip division bonuses to 10.5 percent of operating profit, following strike threats.

Kakao, the operator of South Korea's dominant messaging app, confirmed last month that wage negotiations with the union had failed to reach an agreement during government-mediated talks. The union argues that Kakao's compensation structure requires reform, asserting that only executives have seen bonus increases in recent years, while other employees have received limited benefits. Kakao has previously dismissed the union's demand for profit-sharing as unrealistic.

The union has informed local police that approximately 1,200 members are expected to participate in the rally. Kakao Group employs around 6,000 workers. In a statement, the company indicated it is implementing a real-time system to manage the strike's impact and affirmed its intention to continue negotiations with the union to achieve a resolution.